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Case Study

Saint Agnes Medical Center

Revolutionizes Its Surgical
and Supply Chain Processes
At a Glance Saint Agnes Medical Center faced Saint Agnes identified a number
excess inventory, inconsistent of key goals:
Organization documentation of supplies, varying – Reduce extensive, expensive
Saint Agnes Medical Center practices and lost charges in its onsite inventory
Fresno, Calif. surgical and supply departments.
Using McKesson solutions, the – Decrease surgical operating costs
– 436-bed acute-care medical center
medical center achieved its vision – Reduce variation in physician
– State-of-the-art heart and for a seamless, fully automated practice
vascular center and integrated surgery and supply – Decrease error rates for surgery
– Inpatient visits per year: 25,000 chain process. Results include time and medication charging
– Outpatient visits per year: 330,000 standardized practices, optimized
inventory management, a 20% – Increase availability of necessary
Solution Spotlight increase in charge capture, and surgical supplies

– Horizon Anesthesia savings of more than $11.5 million. – Improve consistency, legibility,
Documentation accuracy and completeness of
Challenge documentation
– Horizon Business Insight
With such distinctions as a Top 100 – Enhance management access
– Horizon Performance Manager
Hospital for Cardiac Bypass Surgery to data
– Horizon Surgical Manager in America and a Consumer Choice
– Pathways Contract Management Award winner for 11 consecutive Answers
– Pathways Healthcare Scheduling years, 436-bed Saint Agnes Medical Saint Agnes has a long history of
– Pathways Materials Management Center has long been the hospital successfully using McKesson’s legacy
of choice in Fresno, Calif. But with solutions. To realize its goals, the
Critical Issues new hospitals in the area, Saint hospital upgraded to McKesson’s
Agnes faces fierce competition for integrated surgical and supply chain
– Expensive onsite inventory patients and revenue. Hospital solutions to collect, transfer and
– High surgical operating costs management pinpointed the need manage key patient information —
– Inefficient accounts to more effectively and efficiently from scheduling to admission to
receivable/revenue recovery manage surgical and supply costs recovery to discharge. Through
– Lack of solid information to remain competitive. the integration of McKesson’s
for management performance management solutions,
“A large percentage of charges for Saint Agnes can warehouse and
Results a hospital are surgical charges, and access data to support its strategic
a large percentage of those are goals. And McKesson’s surgical and
– Reduced supply inventory by associated with supplies,” explains
55.2%, a $2.1 million savings anesthesia documentation tools
Kathleen Dole, manager of product help clinicians produce legible and
– Reduced orthopedic and support systems. “Our goal was to complete documentation, ultimately
cardiovascular implant costs integrate surgery and materials automating the charging process
by $2.3 million management. Without that, we and eliminating billing errors.
– Gained lost charges of $1.5 million would continue to experience lost
– Recovered managed care and charges, billing errors, inconsistent “The most valuable aspect of the
contract charges of $5.8 million availability of supplies, and lack of integration between McKesson’s
business-critical reporting data.” surgical, performance and supply
– Enhanced access to business-critical
reporting data chain suite is that it allows the clinical,
Case Study

“I recently talked to one financial and decision support sides to including $1.5 million in formerly
speak the same language,” says Diane lost charges; and $5.8 million in
of my area competitors and Kasten, RN, surgical systems specialist. managed care and contract charges.
he shared that some of his “Now we speak with one voice.”
Resource and Supply Utilization –
biggest worries were about his Results Saint Agnes is now able to identify
The integrated surgery and supply chain needed supplies at scheduling.
supply chain and revenue cycle. Pathways Materials Management™
process enabled Saint Agnes to leverage
Those are the least of my worries, resources, reduce costs and improve reduces the inventory on hand for
decision making. Results include: requested supplies as soon as pick
thanks to McKesson’s solutions.” tickets are printed. A custom variance
Cash Flow – With the support of report compares Horizon Surgical
McKesson technology, Saint Agnes Manager and Pathways Materials
Kathleen Cain dramatically reduced slow-moving Management pick tickets, lists the
surgical inventory and eliminated items missing from the cart and allows
Chief Financial Officer “just-in-case” supplies. Inventory was procurement from OR supply locations.

Saint Agnes Medical Center reduced 55.2%, saving $2.1 million.

Patient Satisfaction/Accuracy of Billing
Operating Costs – Horizon Business – Horizon Anesthesia Documentation
Insight™ provides valuable information and Perioperative Documentation
to Saint Agnes personnel, including produce legible and complete
data that convinced physicians to documentation, automating charging
adopt standardized surgical practice processes to eliminate billing errors.
patterns. The hospital reduced
orthopedic and cardiovascular Strategic Management and Decision
implant costs by $2.3 million. Making – Horizon Performance
Manager™ and Horizon Business
Operating Revenue – Horizon Insight allow data access that creates
Surgical Manager™ automates all OR business-critical management reports
and recovery time charges, virtually — daily, monthly or whenever needed.
eliminating errors, and eliminates
rekeying of pharmacy charges. “I recently talked to one of my area
Horizon Anesthesia Documentation™ competitors and he shared that some
eliminates separate entry of anesthesia of his biggest worries were about
charges. With Pathways Contract his supply chain and revenue cycle,”
Management™, Saint Agnes monitors says Kathleen Cain, Saint Agnes chief
contract compliance and compares financial officer. “Those are the least
daily payments received against of my worries, thanks to McKesson’s
contract terms. Results include an solutions.”
ongoing recovery of payments owed,

Copyright © 2007 McKesson Corporation and/or one of its subsidiaries. All rights reserved. Horizon Anesthesia Documentation,
McKesson Provider Technologies Horizon Business Insight, Horizon Performance Manager, Horizon Surgical Manager, Pathways Contract Management,
Pathways Healthcare Scheduling and Pathways Materials Management are trademarks of McKesson Information Solutions
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Alpharetta, GA 30005 respective companies. PRT291-07/07